A presentation my team and I created for our Managerial Skills course taught by Professor Samuel Freeman

1. Entering the premium market
Hulting Consulting, LLC

2. Meet the
Hulting Consulting Team
Lukas Brandon Nina
Varun Noppasith Vincent

3. Agenda
1. Problem Definition (SCQ)
2. Issue Analysis
3. Work Plan
Locations:
BOSTON
DUBAI
LONDON
SHANGHAI
SÃO PAULO
SEOUL
TORONTO
© 2012 IXL Center Inc. All Rights Reserved

4. Company Overview
French manufacturer of automobiles with two main renowned brands:
2011 Key Figured: Type:
• Europe’s second largest automaker; 8th largest Private
• Sale operations in 160 countries, 16 production Company Size:
210,000
facilities, and 210,000 employees
Founded:
• Sold in excess 3.5m vehicles in 2011, of which 1976
42% were outside Europe
• Generated sales & revenue of €59.9 billion
• Invested €2.3 billion to R&D in China and Latin
America with special focus on new synergies.

5. The Situation
• Second Largest European automakers
• Main markets in France and Slovakia
• Issues coping with the economic recession
• Focus on low, small margin cars
• Their brand image is low-cost and quality
• French car makers do not have a premium view
• Lost close to One billion Euros
• Consumers are more price sensitive
• Rivalry from Fiat and Renault
• Can PSA enter the premium market in China despite the economic
crisis?

6. Based on the SCQ we divide the key
Issue Analysis For PSA question into 3 questions
Can PSA enter the premium market in China despite the economic
crisis?
1.Can they re-image 3.Can they make a new car line
themselves to be a higher 2.Can they be more cost-
efficient? specifically aimed towards the
quality automakers? premium car market?
• Is there financial resources • Can revamping the factories • Can PSA afford to make a new car
to support the brand? and R&D department cut cost? line?
Sub questions
• Can the factories be more • Can they effectively create a new
• Can Peugeot lose their hold
productive without sacrificing image separate from the existing
on the current target when one?
altering their strategy? employees?
• Can they compete with the
• Will creating a factory in
• Can they target the upper existing premium car
China be beneficial? manufacturers?
middle class?
•• Determine a new business
• Data mining for financial • Audit from a third party for
Activities / Tasks
research new manufacturing strategy plan
• Interview and market • Stronger human resource • Hype up by leaking pictures
survey with the current impact and financial analysis of concept cars
audience • Study Chinese legal and • Conduct surveys
• Utilize social networking to business laws, practice and • Competitor analysis and
find more detail information customs Porter’s Five Forces

7. Peugeot currently targets the lower class
Key
Question
segment of the market . . . . .
1.Can they reimage themselves to be a higher quality
automakers?
1.1 Sub Question
A. Is there financial resources to support the brand?
B. Can Peugeot lose their hold on the current target when altering their strategy?
C. Can they target the upper middle class?
1.2 Activities
A. Data mining for financial research
B. Interview and market survey with the current audience
C. Utilize social networking to find more detail information

8. Key
In response to the fall of demand . . . . .
Question
2.Can they be more cost-efficient?
2.1 Sub Question
D. Can revamping the factories and R&D department cut cost?
E. Can the factories be more productive without sacrificing employees?
F. Will creating a factory in China be beneficial?
2.2 Activities
D. Audit from a third party for new manufacturing strategy
E. Stronger human resources impact financial analysis
F. Study Chinese legal and business laws, practice and customs

9. The group is pursuing a strategy of
Key
Question
brand up scaling . . . . .
3.Can they make a new car line specifically aimed
towards the premium car division?
3.1 Sub Questions
G. Can PSA afford to make a new car line?
H. Can they effectively create a new image separate from the existing one?
I. Can they compete with the existing premium car manufactures?
3.2 Activities
G. Determine and gain more research for a new business plan
H. Hype up by leaking pictures of concept cars
I. Conduct surveys, competitors analysis and Porter’s Five Forces strategy

10. The Work Flow

11. Thank you
谢谢